The global Endpoint Protection Platform (EPP) market is expected to grow at a CAGR of 10.7% from $17.4 billion in 2024 to $29.0 billion by 2029. Growth is driven by increasing BYOD policies, remote work adoption, and integration of AI/ML technologies for threat detection. The BFSI sector holds the largest market share, while cloud-based EPP solutions present significant growth opportunities.

Oppenheimer's channel checks reveal positive momentum for cybersecurity companies CrowdStrike and SentinelOne. CrowdStrike maintains its leadership in next-generation endpoint security with strong VAR partner sentiment and successful cross-selling, though valuation remains a concern at 18x forward P/S. SentinelOne shows marked improvements with partners reporting high-20% growth and praising its Purple AI solution, trading at an attractive valuation of below 4x forward P/E.

SentinelOne CEO Tomer Weingarten sold 39,472 shares for approximately $532,000 on Feb. 11, 2026, as part of a pre-arranged Rule 10b5-1 trading plan. The sale is not considered a red flag as the CEO retains over 1 million shares. Despite the stock being down 43% over the past year and hitting 52-week lows, analysts view the current valuation as attractive with a price-to-sales ratio near multi-year lows, and the company is forecasted to reach $1 billion in sales for the first time in fiscal 2026.

The global Advanced Malware Detection market is projected to grow from USD 10.94 billion in 2025 to USD 31.17 billion by 2033, with a CAGR of 13.98%. The U.S. market alone is expected to reach USD 12.47 billion by 2033. Growth is driven by rising cybersecurity threats, AI-powered defense solutions, increased adoption of remote work, and strict regulatory compliance requirements across critical sectors including BFSI, healthcare, and government.

Cybersecurity stocks are trading lower despite strong demand and double-digit growth. SentinelOne, CrowdStrike, and Palo Alto Networks are recommended as top picks, with SentinelOne offering the steepest valuation discount, CrowdStrike recovering from its 2024 outage, and Palo Alto Networks showing consistent profitability as the market leader.

SentinelOne, an AI-powered cybersecurity company specializing in endpoint security, trades down over 80% from its 2021 peak and is considered the most undervalued AI stock on Wall Street. Despite being unprofitable and facing intense competition, the company maintains strong financial health with $650 million in cash, positive free cash flow, and projected $1 billion revenue with 20% growth expected. The stock's deeply discounted valuation relative to competitors like CrowdStrike and Palo Alto Networks presents a contrarian investment opportunity if the company can regain market confidence.

The article recommends CrowdStrike and SentinelOne as long-term cybersecurity investments, arguing that cybersecurity is increasingly important alongside AI development. CrowdStrike is positioned as the industry leader with strong profitability, while SentinelOne offers a cheaper valuation with growth potential. The cybersecurity market is expected to double from $140 billion to $300 billion by 2030.

The article recommends two Nasdaq stocks poised to benefit from strong AI spending in 2026. Applied Materials is expected to see increased demand for semiconductor manufacturing equipment as chipmakers boost capital expenditures to meet AI chip demand. SentinelOne, a cybersecurity company, is trading at depressed valuations after a difficult 2025 but has strong growth prospects driven by AI-focused security solutions and an expanding pipeline.

SentinelOne stock declined 32.4% in 2025 and continued falling 7.3% into 2026, despite solid revenue growth. The cybersecurity company faced investor concerns over decelerating sales growth, margin pressures, weak forward guidance, and competitive pressures. The stock is now valued at 72.5x forward earnings and 7.7x expected sales, significantly underperforming the broader market indices.

The article identifies three undervalued AI stocks with significant growth potential: UiPath, which is positioned to lead in AI agent orchestration; GitLab, which is unfairly penalized by AI-replacement fears despite strong growth; and SentinelOne, a cybersecurity company trading at a discount with upcoming catalysts including a Lenovo partnership and AI data leakage protection capabilities.

The global endpoint security market is expected to grow from USD 21.90 billion in 2025 to USD 65.04 billion by 2035 at a CAGR of 11.5%, driven by escalating cyber threats (161 billion annually), workforce shortages, and enterprise adoption of AI-driven autonomous platforms and unified XDR solutions. Software solutions dominate with over 60% market share through subscription models, while large enterprises account for 65% of revenue due to regulatory compliance mandates.

Data sovereignty regulations are fragmenting global AI and cloud markets as organizations must keep sensitive data within national borders. The government cloud market is projected to reach $190.66 billion by 2033, driving demand for secure infrastructure. Major cybersecurity and cloud companies are securing government contracts and expanding capabilities to meet compliance requirements across multiple regions.